Siemens Energy hikes FY26 outlook as record Q2 orders hit €17.75 bln – Image for illustrative purposes only (Image credits: Pexels)
Frankfurt – Demand for power equipment tied to data centers and grid upgrades propelled Siemens Energy to a record quarter. The German company reported preliminary second-quarter results that exceeded expectations across orders and profitability. Management responded by lifting its full-year targets for fiscal 2026.
Orders Reach New Heights
Incoming orders climbed 29.5 percent to €17.75 billion in the three months ended March 31. That figure surpassed analyst forecasts and marked the strongest quarterly intake in the company’s history. The surge reflected broad strength in gas services and grid technologies, where utilities and industrial customers accelerated purchases amid rising electricity needs.
Revenue for the period rose 8.9 percent to €10.3 billion. Profit before special items reached €1.16 billion, lifting the margin to 11.3 percent from 9.1 percent a year earlier. Net income more than doubled to €835 million, while free cash flow before tax approached €2 billion.
Guidance Lifted on Sustained Momentum
Based on the first-half performance and continued market strength, Siemens Energy raised its fiscal 2026 outlook. Comparable revenue growth is now expected at 14 to 16 percent, up from the prior range of 11 to 13 percent. The profit margin before special items was revised to 10 to 12 percent from 9 to 11 percent. Free cash flow before tax is now targeted at around €8 billion, a sharp increase from the earlier €4 billion to €5 billion range.
The company also highlighted an all-time high order backlog of €146 billion. This visibility supports confidence that the upgraded targets can be met even as some segments face headwinds. Shares in Frankfurt rose more than 6 percent on the announcement.
Grid and Gas Drive Growth
Grid Technologies posted order growth of 41.5 percent, fueled by global efforts to expand and modernize electricity networks. Gas Services saw orders rise 32.4 percent, benefiting from demand for turbines that support reliable power supply for large-scale computing facilities. Both divisions also delivered strong cash generation during the quarter.
Transformation of Industry recorded softer order intake yet improved its profitability through operational discipline. The wind business, Siemens Gamesa, continued to lag with orders of €846 million, though losses narrowed compared with the prior year.
What matters now
- Record backlog provides multi-year revenue visibility
- Grid and gas segments remain primary growth engines
- Full results scheduled for release on May 12
The upgrades underscore how energy technology firms are capitalizing on the intersection of digital infrastructure expansion and the energy transition. Siemens Energy’s performance illustrates the scale of investment required to support both trends simultaneously.
